state whether the following statements are true or false 618957

Aug 30, 2021 | Uncategorized

State whether the following statements are True or False

  1. Accounting principles are judged on their general acceptability (subject to laws of the land) is the underlying concept of GAPP.
  2. Accounting principles are final statement.
  3. In all types of organisations, business is an accounting entity that separates from the owners.
  4. Different accounting concepts are independent of each other.
  5. GAPP manifest themselves through basic accounting concepts and accounting conventions.
  6. Accounting concepts are based on accounting conventions
  7. Accounting concepts are not internally inconsistent.
  8. The capital of the owner is treated as a creditor for his investment in business.
  9. The separate legal entity is recognised in law in the case of partnership firms.
  10. As per entity concept, income is the property of the business and not that of the owners.
  11. Money, the unit of measurement, has always a constant value.
  12. The going concern concept facilitates the classification of assets and liabilities into short term and long term.
  13. The accounting period concept necessitates the preparation of income statement on accrual basis.
  14. As per the cost concept, assets are always values at historical cost.
  15. Unexpired costs are not recorded in the balance sheet.
  16. Realisation of revenue occurs at the time of exchange of goods or services.
  17. Under accrual basis of accounting, revenue is recognised when the cash is received.
  18. The accrual concept can also be described as the matching concept.
  19. As per prudence convention, the accountants should anticipate profit and should not make provision for loss
  20. As per materiality convention, the accountants should disclose all information in the financial statements, irrespective of the nature of materiality.